Solar energy has seen tremendous growth in recent years and is expected to continue to expand in the coming years. In this post, we will cover some of the key solar projections and trends, as well as what we can expect to see over the next year and beyond.
Solar Energy Capacity is Expected to Reach 1 Terawatt
Renewable energy production is becoming more competitive than ever before. In many cases, it is more cost-effective and environmentally friendly for businesses to start integrating renewable energy into their power mix. Several organizations across the United States have publicly released emission reduction goals in line with ESG targets.
“Even with no increase in policy support from the current levels, and even without strong carbon prices or net zero targets, … some 56% of power generation could be provided by solar and wind by 2050”
BNEF New Energy Outlook 2020
Despite the significant challenges the solar industry faced in the past few years, solar energy capacity is expected to continue to increase in 2023 and beyond. According to the International Energy Agency, global solar energy capacity is projected to reach 1,000 gigawatts by 2023, up from just over 600 gigawatts in 2020. This growth will be driven by a combination of falling costs, favorable policy environments, and growing demand for renewable energy. California is currently the largest solar energy market in the United States and is expected to continue to be such through 2023.
Solar Batteries Will Become More Popular
In 2023, solar batteries are expected to become more popular than ever before, with increased investments and technological advancements.
With the rising awareness of climate change and growing demand for sustainable energy solutions, many people are looking towards solar as an affordable alternative to traditional power sources. Solar battery technology is one way in which this goal can be achieved. It allows homeowners and businesses to store excess energy produced during sunlight hours so that they can use it at night or when the local power grid goes down. This helps reduce reliance on conventional electricity sources while still providing reliable access to power when needed most.
In addition, recent developments in battery technology and integration with artificial intelligence allow your house to run more efficiently by drawing power from the battery during peak power consumption times. These new technologies can ensure that you are using free electricity that was generated by your solar panels, potentially saving you thousands of dollars per year.
Solar Panel Prices are Expected to Fall
Solar panel prices have been a major point of discussion in the solar industry for many years. With the ever-growing demand for renewable energy sources, new projections from experts suggest that prices will soon become more affordable. According to 2023 projections from the Solar Energy Industries Association (SEIA), solar panel prices are expected to fall significantly over the next two years as technology continues to improve, and production costs decline.
The SEIA estimates that solar panel costs will drop by at least 15% over the course of 2023 due to improvements in manufacturing processes and product design, reducing installation costs and making it easier for homeowners and businesses alike to benefit from renewable energy sources. This is good news for those looking to invest in green energy solutions, as this could lead to significant price reductions on panels while also increasing access to clean electricity.
One of the key drivers of the growth in solar energy has been the falling cost of solar panels and other hardware. In recent years, the cost of solar panels has fallen by around 70%, making solar energy more affordable for both residential and commercial customers. This trend is expected to continue in the coming years, as advances in technology and manufacturing drive down costs even further.
Changes at the State and Local Level
About half of the renewable energy growth since the early 2000s is attributed to state renewable energy requirements. There are currently ten states, as well as Washington DC, Puerto Rico, and Guam, that have set a 100% clean energy portfolio requirement with deadlines ranging from 2030 to 2050.
The current administration’s targets are for a 50% reduction in greenhouse gas pollution from 2005 levels by 2030. This sets the stage for incredible growth opportunities and private sector investment in renewable technologies, throughout the ecosystem, and especially and especially in solar.
Although local and state tax benefits have helped increase the number of solar installations across the US, many of these programs will expire soon. For example, 2023 is the last year that you can receive a tax benefit for installing solar in the state of Utah. Fortunately, the federal government recently extended and increased the federal tax credit with the passing of the Inflation Reduction Act. This will continue to make solar, and other renewable energy installations on residential properties a smart investment.
Conclusion:
The solar energy industry is projected to continue to grow and expand in the coming years. With falling costs, favorable policy environments, and increasing demand for renewable energy, solar energy is well-positioned to play a key role in the global energy mix.
If you would like help planning and implementing solar or battery solutions in your home or business, contact us or give us a call at 385-270-9608.
